Since taking office last July, Leung’s perceived close ties with Beijing have proved more hindrance than help, as mainland China’s influence has been blamed for everything from inflation and housing shortages to unnecessary mega-transport projects. A reminder that the Chinese mainland can also deliver good-news imports would be helpful.
On Friday, the People’s Bank of China announced preparations are underway for its so-called “qualified domestic individual investor” scheme. This news could help reinforce Hong Kong’s position as China’s premier capital market and give a near-term lift to equities.
Of course, there have been false starts before since the through-train idea was first floated in 2007. But this time, it could be in both Hong Kong and Beijing’s interests to proceed.
Equity-market conditions have turned full-circle since then. Gone is the investment mania, particularly on the mainland. But this could play to Hong Kong’s advantage.
One explanation for the through-train hitting the buffers was that Beijing’s bigger priority was developing its mainland stock markets.
As well as getting more of China’s better Hong Kong-listed companies to dual-list in Shanghai, regulators were also pushing for the establishment of an international board. This would have seen blue-chip multinationals and global banks list shares in Shanghai.
Click to Play Beijing pollution sends air quality index to extreme levelsAir pollution darkens skies in Beijing over the weekend. An air-quality index at the U.S. embassy shows a reading of 755, far above high readings that typically only take place during rare events such as forest fires. Photo: Getty Images.
The latter plan has also been delayed, however, hit by the reality of deteriorating market conditions. ...cont/-
Since taking office last July, Leung’s perceived close ties with Beijing have proved more hindrance than help, as mainland China’s influence has been blamed for everything from inflation and housing shortages to unnecessary mega-transport projects. A reminder that the Chinese mainland can also deliver good-news imports would be helpful.
ReplyDeleteOn Friday, the People’s Bank of China announced preparations are underway for its so-called “qualified domestic individual investor” scheme. This news could help reinforce Hong Kong’s position as China’s premier capital market and give a near-term lift to equities.
Of course, there have been false starts before since the through-train idea was first floated in 2007. But this time, it could be in both Hong Kong and Beijing’s interests to proceed.
Equity-market conditions have turned full-circle since then. Gone is the investment mania, particularly on the mainland. But this could play to Hong Kong’s advantage.
One explanation for the through-train hitting the buffers was that Beijing’s bigger priority was developing its mainland stock markets.
As well as getting more of China’s better Hong Kong-listed companies to dual-list in Shanghai, regulators were also pushing for the establishment of an international board. This would have seen blue-chip multinationals and global banks list shares in Shanghai.
Click to Play Beijing pollution sends air quality index to extreme levelsAir pollution darkens skies in Beijing over the weekend. An air-quality index at the U.S. embassy shows a reading of 755, far above high readings that typically only take place during rare events such as forest fires. Photo: Getty Images.
The latter plan has also been delayed, however, hit by the reality of deteriorating market conditions.
...cont/-